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of <h1>High Court grants relief in appeal challenging octroi on goods in Customs Bonded Warehouses</h1> <h3>RAYMOND WOOLLEN MILLS LTD. AND ANOTHER Versus STATE OF MAHARASHTRA AND ANOTHER</h3> RAYMOND WOOLLEN MILLS LTD. AND ANOTHER Versus STATE OF MAHARASHTRA AND ANOTHER - 1987 (32) E.L.T. 513 (Bom.) Issues:1. Appeal against summary rejection of writ petition filed by the appellants.2. Contention regarding the collection of octroi on goods stored in Customs Bonded Warehouses.3. Consideration of the point raised by the appellants in light of a judgment from the Gujarat High Court.4. Granting of interim relief to the appellants based on their undertaking.5. Argument against granting interim relief and the issue of the service charge for octroi collected.Analysis:The judgment by the High Court of Bombay involves an appeal challenging the summary rejection of a writ petition filed by the appellants. The appellants import goods into India and transport them to their mills at Thane without paying octroi. However, when goods are stored in Customs Bonded Warehouses within the Municipal limits of Greater Bombay, octroi is collected by the Municipal Corporation and refunded, excluding a service charge. The appellants argue that octroi should not be collected on goods stored in Customs Bonded Warehouses as per Section 192 of the Bombay Municipal Corporation Act, which allows octroi collection only on goods entering for consumption, use, or sale within Greater Bombay.The court acknowledges the appellants' contention, noting that it warrants consideration. The respondents refer to a judgment from the Gujarat High Court that differs from the appellants' position, but the Bombay High Court deems the issue raised by the appellants significant. Consequently, interim relief is granted to the appellants based on their undertaking that imported goods stored in Customs Bonded Warehouses will be transported outside the Municipal limits and not used, consumed, or sold within the area. The appellants also agree to provide monthly statements to the Municipal Corporation regarding the goods stored and transported.Despite objections raised against granting interim relief and the mention of the service charge for octroi collected, the court allows the appeal. The order of summary rejection is set aside, and the appellants' undertakings are accepted. The court orders that the appellants pay the service charge on goods stored in Customs Bonded Warehouses, with the liberty to apply for a refund of this charge during the petition hearing. The Municipal Corporation is given the liberty to apply for a fixed date for the petition hearing after filing an affidavit-in-reply. The judgment concludes with no specific order as to costs, maintaining a neutral stance on the matter.
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